MercoPress. South Atlantic News Agency

Argentina settles scores with Paraguayan side of Yacyretá

It was a requirement from the IMF, Benítez explained

The Paraguayan side of the Yacyretá Binational Entity (EBY) admitted Wednesday that Argentina now owed nothing after paying US$ 23 million earlier this week, although certain arrangements concerning US$ 50 million were still pending. Paraguay's EBY General Manager Luis Benítez also pointed out that a financial agreement would be signed next week to set the entity's accounts straight.

”They (Argentina) paid just yesterday (Tuesday) for the transfer of energy. They do not owe anything for energy assignment, they paid 23 million (dollars) that they were owing. Let's remember that last year they paid 100 million (dollars), before that they paid 5 million (dollars) and 21 million (dollars),” Benítez told reporters.

Benítez also mentioned that Argentina was required by the International Monetary Fund (IMF) to settle its debts while “negotiating a credit.”

”It is an obligation to pay the neighbors. So, they paid yesterday (on Tuesday). That goes directly to the Treasury, it does not go to EBY. And with us they have a debt of about 50 million dollars,“ he also explained.

”Next week, God willing, we will sign an agreement, a one-year agreement on a trial basis. This will enable the entity to have a flow to pay the bank accounts, and suppliers, and to have a flow to have much more presence in the four departments (Itapúa, Misiones, Ñeembucú and Caazapá),“ he added.

”We with Continental owed 95 million (dollars), today we are (at) 75 million (dollars). We are going down. And well, if we sign this agreement we have a payment schedule of 30 million (dollars) per year. I calculate that before leaving 2027 we will leave zero debt in the binational entity,” Benítez went on.

Since June last year, Paraguay's National Electricity Administration (ANDE) has been withdrawing about 50% of the energy generated by EBY, providing financial relief for Paraguay. There are also plans to restart the machining works at Aña Cuá, which have been halted since January last year.

These announcements were made days after Benítez started implementing staff layoffs to minimize expenses ahead of a new fixed tariff agreement with Argentina, which was deemed crucial for covering current costs and ensuring the EBY's financial stability.

Since June of last year, the National Electricity Administration (ANDE) withdraws about 50% of the energy generated by the binational entity and does so “paying up to date”, with which the Paraguayan side has an economic respite. In this sense, at the beginning of the current administration, the Government announced the purchase of 50% as a measure of pressure on Argentina for the payment of overdue debts, which has been fulfilled since the middle of the year 2024.